Trade Minister Don Farrell is due to hold face-to-face talks with his EU counterpart in Osaka on Monday but has already told negotiators he will be walking away from the deal — for the second time in three months — because the offer on the table is still not good enough.

But five years after negotiations began, farmers have labelled the existing offer a "dud", arguing it barely improves market access for Australian sugar, red meat and dairy and would impose "conditions" or European-mandated restrictions on local farming practices.

The other major sticking point has been EU demands for Australia to give up naming rights to hundreds of products – including prosecco, parmesan and feta – to protect so-called "geographical indications".

As part of the agreement, the EU has been pushing for greater access to Australia's vast critical minerals, and for the abolition of the $1 billion Luxury Car Tax, which would benefit Australian consumers.

The two sides agreed a trade deal would help both markets diversify away from China, which slapped eye-watering tariffs on Australian imports during the height of the COVID-19 pandemic in what was widely viewed as economic coercion.

The Albanese government has been gradually restoring trade ties with Beijing since coming to power and it is hoped the prime minister's upcoming trip to China will see a further relaxation of sanctions.

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